More than half will be in an ACO by 2014; 27 percent have no ACO
plans

April 29, 2013 09:05 AM Eastern Daylight Time

CHARLOTTE, N.C.--(BUSINESS WIRE)--Hospitals and health systems nationwide are projecting a significant
shift in 2013 admissions from inpatient to outpatient settings as they
transition toward new care delivery models, according to the Premier
healthcare alliance’s spring
2013 Economic Outlook.

Only 35 percent of 530 survey respondents – primarily hospital C-suite,
and materials and practice area managers – are projecting an increase in
inpatient volume in 2013 compared to 2012, a 30 percent decrease from
predictions a year ago. Respondents projecting a decrease in inpatient
volume in 2013 compared to 2012 rose 28 percent over the same period.

Accordingly, 69 percent of respondents are projecting an increase in
2013 outpatient volume compared to 2012.

This trend is likely being driven by healthcare legislation and
mandates, cited by a third of respondents as the biggest driver of
healthcare costs.

“With reimbursement cuts and changes in care delivery threatening
today’s status quo, healthcare providers face a significant change
imperative as they transition toward more accountable, value-based care
models,” said Premier Chief Operating Officer Mike Alkire. “Ensuring
patients are cared for in the most efficient manner – without
compromising quality – is key to success. This means more care is being
shifted to less intensive and expensive outpatient care sites, with
lower reimbursement rates.”

HIT expenditures

When asked where the largest capital investment is expected to be made
over the next year, almost 43 percent of respondents cited healthcare
information technology/telecommunications, up 21 percent from two years
ago. Still, 32 percent reported being unable to share data across the
continuum of care, which is essential for effective care coordination.

“We need to know everything we can about a patient’s care – what has
gone on before and what’s coming up,” said Eric Bieber, MD, chief
medical officer, University Hospitals (Cleveland). “Otherwise, we have
variation and redundancies that may degrade care quality and efficiency.
The closer we can get to real-time information and get it in the hands
of providers, the more likely the right things will be done and
opportunities won’t be missed.”

Additional results from the spring 2013
Economic Outlook survey

ACO - Yes or no?

Almost 22 percent of respondents are in an accountable care
organization (ACO), with 55 percent planning to be by the end of 2014.

Nearly 27 percent currently do not have plans to pursue the ACO model,
and may choose other forms of clinical integration such as bundled
payment, care management fees or pay-for-performance.

Weight of waste

When asked about the biggest drivers of healthcare costs,
overutilization of products and services (29 percent, up 22 percent
from a year ago) and lack of clinical care coordination (22 percent,
up 21 percent from a year ago) were often cited.

Reimbursement cuts

Reimbursement cuts were cited by 48 percent of respondents as having
the greatest impact on their health systems, up 5 percent from last
year and 10 percent from six months ago.

Capital spending projections

40 percent of respondents are projecting their capital spending to
increase over the next 12 months as compared to last year, down
slightly from 43 percent a year ago.

Almost 37 percent are projecting a capital spending decrease based on
the same criteria, up from 35 percent in spring 2012.

Premier is the nation’s largest performance improvement alliance of more
than 2,800 U.S. hospitals and 93,000 other sites using the power of
collaboration and technology to lead the transformation to coordinated,
high-quality, cost-effective care. Owned by healthcare providers,
Premier operates a leading purchasing network with more than $5 billion
in annual savings. Premier also maintains clinical, financial and
outcomes databases based on 1 in every 4 patient discharges. A world
leader in measurably improving patient care, Premier has the largest
performance improvement collaboratives in America, including one in
partnership with the Centers for Medicare & Medicaid Services.
Headquartered in Charlotte, N.C., Premier also has an office in
Washington. https://www.premierinc.com.
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